The pandemic impacted U.S. retail supply chains first, as factories and ports began to close in late January across China. Many companies had already started to diversify their sourcing once the tariff wars began in 2018, but the lockdowns eventually spread to several of those sources as well. In the U.S., shutdowns varied by state and sometimes localities. Many companies — even essential retailers – were forced to close their distribution and fulfillment centers or limit throughputs. Shuttered stores could no longer receive flow.

For consumers, the resultant stockouts and late deliveries were a real inconvenience; for supply chain companies and retail executives, it was absolute chaos. With multiplying fulfillment and delivery options, logistics have become exponentially more complex. And purely transactional relationships with vendors and customers are being replaced by more flexible, strategic partnerships across the supply chain.